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March 4, 2000 |
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In Southtown Fight RIOC Hires Outside Counsel, Cancels Another Board Meeting
Facing two legal actions seeking to overturn its September 22
resolution giving final designation to Southtown builders and
approving their layout for the development, the Roosevelt Island
Operating Corporation (RIOC) has hired outside counsel to do
battle for it. The attorney, Stephen Kass of Carter, Ledyard &
Milburn, told The WIRE on Thursday that "Both these
lawsuits are
conspicuously without merit." He said, "I expect both to be
dismissed on a relatively short time-schedule. Neither states a
significant cause of action."
Meanwhile, RIOC has canceled its second Board of Directors
meeting in as many months, saying there are no items of new or
old business for the Board to consider. The Board's next evening
meeting, scheduled for Thursday, April 13, at 7:00 p.m., remains
on the schedule.
The legal moves against RIOC's approved plan for Southtown are
Article 78 filings, which seek to set aside a governmental
action. The developers are named in one of the suits, that of
Roosevelt Islanders for Responsible Southtown Development
(RIRSD), and have also hired outside counsel, David Paget of
Sive, Paget & Riesel. Paget declined to comment when contacted
by The WIRE.
The second suit comes from Rivercross resident Robert Chira, an
attorney who chairs the Alternative Southtown Design
Committee.
Joan Christianson, Vice President of the Roosevelt Island
Residents Association (RIRA), also has a mandate from the RIRA
Common Council to meet with RIOC in an attempt to secure
compliance with the RIRA's view of the General Development Plan
(GDP) for the Island in the construction of Southtown. The GDP
calls for a park, approximately six acres, separating the
existing Northtown Complex from the planned Southtown buildings.
As planned, placement of the northernmost Southtown buildings
would apparently reduce the available open space to well under
six acres. On Thursday, Christianson told The WIRE
that RIRA's
law firm, DeForest & Duer, had advised her not to say anything
about negotiations. However, it is generally believed that RIOC
and the developers are standing firm in their position that a
portion of the six acres between the derelict Nurses Residence
and Northtown can be used for Southtown buildings.
Attorney Kass said RIOC will be explaining the six-acre park
issue in its papers to the court. "I am familiar with this issue
and I believe it's a complete red herring," he said.
Kass said, "The most important thing is that RIOC has finally
succeeded after a ten-year hiatus in bringing a high-quality
development team to the Island to build the long-deferred
Southtown... I think it's very unfortunate that a small number
of individuals have attempted to place themselves in the way of
that, and I think that does a great disservice to the community
as a whole."
Asked for comment on Kass's remarks, the RIRSD Steering Committee
said, "This is the kind of dismissive response we expected. We
think it interesting that RIOC and the developers found it
necessary to retain high-priced outside counsel to refute a suit
that supposedly has no merit. David Paget is one of Donald
Trump's attorneys. If the RIOC attorneys have any doubt as to
which plan is preferred by the majority of residents, why don't
they sponsor a referendum?"
If dismissed when first considered by a court, the legal actions
could be finished by May or June, though potentially subject to
appeal; if not dismissed, they are expected to delay the start of
Southtown construction by at least nine months, and possibly far
longer.
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